IGI's Q2 profit rises 43.19% as operating margin expands
Revenue growth outpaced expenses, lifting margin 1.08 percentage points sequentially, while the lower tax rate also aided profit.
Filed 21 Oct 2026, 16:17 IST · after market close · International Gemological Institute Limited (IGIL)
Key takeaways
- Consolidated revenue grew 31.04% YoY to Rs 398.02 cr, while operating profit rose 38.79% to Rs 244.51 cr.
- Operating margin expanded 3.43 percentage points YoY to 61.43% as expenses grew 20.34%, below revenue growth of 31.04%.
- Net profit increased 43.19% YoY to Rs 185.84 cr, helped by a 1.70-percentage-point fall in the tax rate to 24.34%.
Price around the results
Revenue growth accelerated in Q2FY27
Consolidated revenue rose 31.04% YoY and 7.35% QoQ to Rs 398.02 cr, with operating profit growing faster than revenue on both comparisons. Management said it is scaling up its Dubai and Turkey operations, with planned expansion into Saudi Arabia and other countries. The company also said capability buildout is supporting growth across segments.
Operating leverage lifted margin, but tax also helped
Expenses grew 20.34% YoY and 4.43% QoQ, slower than revenue growth, lifting operating margin by 3.43 percentage points YoY and 1.08 percentage points QoQ. Interest expense fell 1.86% YoY and 26.74% QoQ, although depreciation increased 41.69% YoY and 11.99% QoQ. The tax rate declined 1.70 percentage points YoY and 1.27 percentage points QoQ, aiding net profit growth; other income accounted for 7.66% of pre-tax profit.
Margin recovered from Q1FY27 but remains below Q4's peak
Operating margin improved from 60.35% in Q1FY27 to 61.43% in Q2FY27, reversing part of the sequential decline from 64.01% in Q4FY26. It remains above the 58.00% recorded in Q2FY26, extending the year-on-year improvement in profitability. Net profit rose 12.13% QoQ, ahead of the 10.24% increase in pre-tax profit.
No market reaction yet; past results usually drew gains
The consolidated results were filed after market close, so there is no post-results market move to assess yet. After its last six results, the stock rose five times and fell once, with a median absolute move of 2.51%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹398 cr | ₹371 cr | +7.35% | +31.04% |
| Other income | ₹19 cr | ₹16 cr | +18.75% | +50.84% |
| Expenses | ₹154 cr | ₹147 cr | +4.43% | +20.34% |
| Operating profit | ₹245 cr | ₹224 cr | +9.26% | +38.79% |
| Operating margin (%) | 61.43% | 60.35% | — | — |
| Interest | ₹2 cr | ₹3 cr | -26.74% | -1.86% |
| Depreciation | ₹16 cr | ₹14 cr | +11.99% | +41.69% |
| Profit before tax | ₹246 cr | ₹223 cr | +10.24% | +39.96% |
| Tax | ₹60 cr | ₹57 cr | +4.73% | +30.82% |
| Net profit | ₹186 cr | ₹166 cr | +12.13% | +43.19% |
| EPS (₹) | ₹4.30 | ₹3.84 | +11.98% | +43.33% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +10.00% | +10.54% |
Volume on the results session was 14.30× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- IGI plans to expand from Dubai and Turkey into Saudi Arabia and other countries.
New initiatives
- IGI says capability buildout is supporting its growth mandate across segments.
What to watch
- Whether operating margin holds above 61.43% after recovering from 60.35% in Q1FY27.
- Whether expense growth remains below revenue growth of 7.35% sequentially.
- Whether the tax rate stays near 24.34% and other income remains at 7.66% of pre-tax profit.